Meet Car Loan Eligibility Criteria or Face Rejection of Your Application

Just imagine what would be going through your mind when you come to know that your car loan application is rejected by the bank. All that search for a dream car, coupled with the build-up of savings over the years would go down as a waste, won't they? You earn a reasonably higher income, but a slight mistake here and there can hinder you from roaming around the city via your own car.

Yes, you heard it right. Your frequent switching of jobs can instill a fear of instability in the minds of the bank officials, which could then become a reason for a lender to reject your application. I am sure, you have got my point of taking the Car loan eligibility factor very seriously. If you are unaware of the parameters that lenders follow to assess your eligibility, you are at the right place to know the same.

Basic Eligibility Criteria:

Car loan, as we speak, is available to both salaried and self-employed fitting into the eligibility criteria set by a lender. It is important you know the basic eligibility phenomenon, right! You can do that by glancing at the pointers below.

• Both salaried and self-employed must be at least 21 years old while applying for a loan. By the time loan tenure is about to get over, salaried must not be over 60 years and self-employed should be below 70 years of age.

• Salaried should be earning a minimum of ₹ 10,000-20,000, while self-employed must have a net annual income of ₹ 1,00,000.

• A minimum work experience of 2 years with a year of employment at the existing organization is mandatory for a salaried professional. In the case of a self-employed applicant, a continued vigil of 2-3 years in the same line of profession is required.

Above were the basic eligibility criteria for Car loan. Now come bank-by-bank and find out where do you stand in the contention of buying your dream vehicle.

SBI Car Loan Eligibility Criteria:

SBI offers a car loan to salaried, self-employed, partnership firms and people engaged in agriculture and allied activities. Below are the pointers that you have to glance at to check your eligibility at SBI.

• The minimum age at the time of car loan application is 21 years for each of the categories stated above. While at the time of loan maturity, their age should not be over 65 years.

• Net annual income of salaried, be it individually or with co-applicant, must be at least ₹ 2,50,000. While the net profit earned or gross taxable income should be a minimum of ₹ 4,00,000 in the case of a self-employed applicant.

Car Loan Eligibility HDFC Bank:

HDFC Bank provides a car loan to salaried, self-employed, partnership firms, etc. Want to know the eligibility norms set by the private lender? Check out the information below.

• Minimum age at the time of application is 21 years across the categories of profession mentioned above. The maximum age allowed at the time of maturity is 60 years for salaried and 65 years for other categories.

• Salaried must have an annual income of ₹ 1,80,000, while that for self-employed and other categories ranges from ₹ 60,000-4,50,000 per annum depending on the type of model you opt to buy.

• While salaried must have an overall work experience of 2 years with a year of stay at an existing employer, self-employed must be doing for at least 2 years to gain the approval. There is nothing specific regarding this when it comes to other categories.

• All are required to have a postpaid mobile or telephone connection at the residence.

Car Loan Eligibility ICICI Bank:

At ICICI Bank, a car loan is available to both salaried and self-employed. To find out the eligibility criteria, go through the below information.

• While salaried during the time of loan application must be at least 25 years old, self-employed on the other hand should be a minimum of 28 years at the same time. At the expiry of the loan tenure, the age of a salaried and self-employed must not be over 58 years and 65 years, respectively.

• Salaried and self-employed should have an annual income of ₹ 2,50,000 and ₹ 2,00,000, respectively.

• Total work experience should be a minimum of 2 years with a year at the existing employer in the case of a salaried, while a 3-year vigil in the same line of business is required from a self-employed applicant.